Business Standard

Economic activity cools down in Jan amid slowdown fears, exports fell 6.58%

The Reserve Bank of India, which has raised borrowing costs six times since May to 6.50%, is seen increasing interest rates again in its April review amid inflation topping estimates

Indian economy, economy, Economic activity
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Photo: Bloomberg

Anup Roy | Bloomberg
India’s economic activity cooled off at the start of the year as higher borrowing costs tempered demand at home and abroad, signaling more pain ahead as the global economy slows down.
 
The needle on a dial measuring so-called animal spirits moved left and was back where it was for six straight months before showing momentum in December. Falling exports and a slack in manufacturing and services drove the weakness in business activity, offsetting improvement in consumption drivers reflected by tax collections and job growth, according to eight high-frequency indicators tracked by Bloomberg.

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First Published: Feb 20 2023 | 6:53 AM IST

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